Robinhood, Coinbase, Others Oppose CFTC Regulation of Political Prediction Markets

A rule change proposed by the U.S. Commodity Futures Trading Commission (CFTC) could threaten the operation of fast-growing political prediction markets such as Polymarket in the United States, sparking strong opposition from cryptocurrency and financial technology companies. Opposition voices came from companies such as Gemini, Crypto.com, Robinhood, Coinbase, and individuals such as well-known blogger Scott Alexander.

Industry insiders believe that the CFTC's proposal exceeds its regulatory authority. Steve Humenik, senior vice president of Crypto.com, said that the CFTC is neither a gambling regulator nor an election regulator and is not qualified to regulate this market. Dragonfly Capital's legal affairs believe that the Supreme Court overturned the Chevron Rule, which means that the CFTC must ensure that it has the power to regulate these contracts. Cameron Winklevoss, one of the founders of Gemini, called on the CFTC to withdraw the proposal and reformulate it with industry stakeholders. Cryptocurrency companies generally believe that this move by the CFTC will seriously undermine the rights of American citizens to access these powerful markets, and call on the CFTC to reconsider its proposal.